Friends who didn't save . . .

[Jay_Gatsby]

My wife, bless her heart, is every bit as frugal as I am: That we happen to be married to one another is no accident.

As is mine. She clips coupons, loves shopping in the grocery store, gets excited about a bargain (even a little one), etc.... Coincidentally, she happens to be a very successful financial advisor/planner with one of the big investment houses (she was my financial advisor/planner before I married her ).

But my siblings married and remarried spouses who have the same ghetto mentality that they have -- spend every penny that comes in the door, the minute it appears -- and their children have basically been brought up to believe that being broke is normal while creating financial comfort is "Republican" (anathema in their world) and Scrooge-like.

The problem is that many people believe that being financially-conservative = Republican. I know plenty of people who are multi-millionaires and are die-hard liberal Democrats. They're also VERY cognizant of their spending and how their money is invested.

The "children" have borrowed a hundred thousand dollars per child to attend incredibly lackluster colleges and universities where they seem to major in surfing.

Then they'll also be in for a very rude awakening. Mom and Dad won't be able to help them repay their loans, and their loans aren't dischargable in bankruptcy anymore.

 

[Sarah in SC]

Coincidentally, she happens to be a very successful financial advisor/planner with one of the big investment houses (she was my financial advisor/planner before I married her ).

Hey, y'all--Jay MARRIED his financial planner!

That is a great story and I agree with you that people are/aren't financially savvy and no amount of leading them to water will make them drink our brand of frugal koolaid.

 

[growing_older]

He also plays the slots at a local casino -- "but he's good at it, and usually wins"

This sounds like someone who only reports results when they are favorable.

 

[Jay_Gatsby]

Hey, y'all--Jay MARRIED his financial planner!

That is a great story and I agree with you that people are/aren't financially savvy and no amount of leading them to water will make them drink our brand of frugal koolaid.

I figured that being a financial planner, she was pretty good with money - her own and money belonging to other people. Didn't hurt that she was very cute (still is).

 

[Moscyn]

Eversince I retired early, I have friends asking me to share on my financial planning and how I was able to pull the plug early. In turn they share their situations with me. Once of them is in her mid forties and still live from paycheck to paycheck with very little savings though she takes lavish holidays and eat at expensive restaurants and drink wine that costs USD100 a bottle. After our talk, she seemed more serious about retirement planning - hopefully. Another golf friend told me she currently uses USD15,000 PER MONTH! This is money just for herself - no dependents. She thinks the best she can do is reduce to USD12,000 per month. Well, at least she got a number in mind which is a good first step.

I stay away from people who have no financial responsibility to themselves. Relatives are a bit different - you can't part with them and good thing my siblings are generally financially responsible.

 

[Jay_Gatsby]

Eversince I retired early, I have friends asking me to share on my financial planning and how I was able to pull the plug early. In turn they share their situations with me. Once of them is in her mid forties and still live from paycheck to paycheck with very little savings though she takes lavish holidays and eat at expensive restaurants and drink wine that costs USD100 a bottle. After our talk, she seemed more serious about retirement planning - hopefully. Another golf friend told me she currently uses USD15,000 PER MONTH! This is money just for herself - no dependents. She thinks the best she can do is reduce to USD12,000 per month. Well, at least she got a number in mind which is a good first step.

I stay away from people who have no financial responsibility to themselves. Relatives are a bit different - you can't part with them and good thing my siblings are generally financially responsible.

Simply amazing. It's funny how "wants" are now considered "necessities".

 

[Texas Proud]

Hey, y'all--Jay MARRIED his financial planner!

That is a great story and I agree with you that people are/aren't financially savvy and no amount of leading them to water will make them drink our brand of frugal koolaid.

Probably just wanted to get discounted advice

 

[Texas Proud]

Eversince I retired early, I have friends asking me to share on my financial planning and how I was able to pull the plug early. In turn they share their situations with me. Once of them is in her mid forties and still live from paycheck to paycheck with very little savings though she takes lavish holidays and eat at expensive restaurants and drink wine that costs USD100 a bottle. After our talk, she seemed more serious about retirement planning - hopefully. Another golf friend told me she currently uses USD15,000 PER MONTH! This is money just for herself - no dependents. She thinks the best she can do is reduce to USD12,000 per month. Well, at least she got a number in mind which is a good first step.

I stay away from people who have no financial responsibility to themselves. Relatives are a bit different - you can't part with them and good thing my siblings are generally financially responsible.

Just a question on the second one... is she the one earning this amount of money And is that total spending or just on herself

It is amazing how much some people can spend without even trying...

 

[Jay_Gatsby]

Probably just wanted to get discounted advice

As a matter of fact, I do get a discount. Mutual fund purchases are at NAV (net asset value) - no commission. I make it up to DW in other ways...

 

[FinanceDude]

As a matter of fact, I do get a discount. Mutual fund purchases are at NAV (net asset value) - no commission. I make it up to DW in other ways...

I could think of a few acronyms for NAV....how about "Naked And Virile".............

 

[Sarah in SC]

Jay, my DH gets the same deal--and all the free advice he can stand!
LOL!

 

[Jay_Gatsby]

Jay, my DH gets the same deal--and all the free advice he can stand!
LOL!

My DW just humors me when I come up with an investment suggestion. After letting me show how brilliant I am, she tells me that it would have been a good idea to get into that area six months earlier.....

 

[Khan]

I hope my relatives aren't planning on any money from me...

 

[Moscyn]

Just a question on the second one... is she the one earning this amount of money And is that total spending or just on herself

It is amazing how much some people can spend without even trying...

Well, she earns a lot since she is high up in the ladder in one of the big investment banks. I think it is not her total spending as she still stays with her rich parents. So, if she were to move out, expenditure might increase if she does not curb her lavish lifestyle. It is really quite easy to spend a lot in the city - when I was working, I always see my colleagues wear clothes that are from big brand names and order limited edition handbags before bonus come. Once you start buying, you just have to keep up with fashion. I try to fit in by wearing black most of the time. Black clothes can look expensive even though they may not be.

 

[Jay_Gatsby]

Well, she earns a lot since she is high up in the ladder in one of the big investment banks. I think it is not her total spending as she still stays with her rich parents. So, if she were to move out, expenditure might increase if she does not curb her lavish lifestyle. It is really quite easy to spend a lot in the city - when I was working, I always see my colleagues wear clothes that are from big brand names and order limited edition handbags before bonus come. Once you start buying, you just have to keep up with fashion. I try to fit in by wearing black most of the time. Black clothes can look expensive even though they may not be.

I've always been of the mindset when it comes to fashion that it's not the clothes you put on your body, but the body on which you put your clothes. A fat guy in an Armani suit is still fat, and he'll look terrible if his suit isn't tailored just right.

Spend money on a gym membership, personal trainer (if needed) and supplements. Your body will thank you, and you'll get far more attention from the opposite sex (or the same, depending on your persuasion) than wearing the latest fashion.

 

[Nords]

The "children" have borrowed a hundred thousand dollars per child to attend incredibly lackluster colleges and universities where they seem to major in surfing.

Would that be UH's Manoa campus or at Hilo?

I understand your point, but I'm not sure that I agree "surfing" correlates with "a waste of college fund". The "Millionaire Next Door" author mentioned one of his students who majored in "college socializing" and minimized his GPA yet went on to a very successful sales career. Even "wasting" time at college seems like a better education than living with one's parents and working in a department store.

Once you start buying, you just have to keep up with fashion. I try to fit in by wearing black most of the time. Black clothes can look expensive even though they may not be.

I think one of the biggest financial benefits of a military career was that I could "keep up with fashion" and "fit in" by wearing khakis or blue coveralls. Today my ER attire clearly demonstrates that I have no idea how to keep up with fashion, let alone fit in.

Good thing, too. Shortly after I ER'd and started surfing & taekwondo, most of my civilian "business attire" became too baggy in the butt and too tight in the shoulders/chest.

 

[tryan]

My 12 and 10 yo are now particapating in a "updated" marshmellow test. Signed $5 bills were given to them after tonights dinner. If they can produce the same 5 bucks 3 months from today ... they DOUBLE thier money.

I expect my 12 yo will keep his eye on the prize ... the 10 yo already has his eye on a video game he's been saving for . We'll see.

Thanx for the video!

 

[Alan]

My 12 and 10 yo are now particapating in a "updated" marshmellow test. Signed $5 bills were given to them after tonights dinner. If they can produce the same 5 bucks 3 months from today ... they DOUBLE thier money.

I expect my 12 yo will keep his eye on the prize ... the 10 yo already has his eye on a video game he's been saving for . We'll see.

Thanx for the video!

I trust you'll report back on the experiment.

 

[Loop Lawyer]

Would that be UH's Manoa campus or at Hilo?

I understand your point, but I'm not sure that I agree "surfing" correlates with "a waste of college fund". The "Millionaire Next Door" author mentioned one of his students who majored in "college socializing" and minimized his GPA yet went on to a very successful sales career. Even "wasting" time at college seems like a better education than living with one's parents and working in a department store.

It would be a certain private university -- not USC -- in Los Angeles. Surfing is not the curriculum, but it's how they spend their time. They are graduating, sequentially, with no honors or useful skills, and, as Jay remarks, they are all in for a rude surprise because their debt is non-dischargeable in bankruptcy. I pointed this out to their parents, who've been bankrupt once already, and was met with deer-in-the-headlights stares from them.

Everyone needs hobbies and passtimes. Nothing wrong with surfing in that regard. But only a foolish young adult, abetted by foolish parents, would borrow $100,000 to obtain a four-year degree at a lackluster school simply because it's "private" and "on the beach" when suitable state colleges and universities are available with little or no borrowing involved.

My wife and I attended private colleges and universities. Most of our children did, too. In hindsight, all were either good or great decisions. But we did not waste time or money.

 

[tryan]

I trust you'll report back on the experiment.

Will do!

 

[SunsetSail]

It would be a certain private university -- not USC -- in Los Angeles. Surfing is not the curriculum, but it's how they spend their time. They are graduating, sequentially, with no honors or useful skills, and, as Jay remarks, they are all in for a rude surprise because their debt is non-dischargeable in bankruptcy. I pointed this out to their parents, who've been bankrupt once already, and was met with deer-in-the-headlights stares from them.
.

Pepperdine

 

[Loop Lawyer]

Pepperdine

Loyola

 

[Alan]

Pepperdine

Loyola

Bless you

 

[lovinglife1]

UCLA....One of the Best decisions I ever made....

 

[Jay_Gatsby]

It would be a certain private university -- not USC -- in Los Angeles. Surfing is not the curriculum, but it's how they spend their time. They are graduating, sequentially, with no honors or useful skills, and, as Jay remarks, they are all in for a rude surprise because their debt is non-dischargeable in bankruptcy. I pointed this out to their parents, who've been bankrupt once already, and was met with deer-in-the-headlights stares from them.

Everyone needs hobbies and passtimes. Nothing wrong with surfing in that regard. But only a foolish young adult, abetted by foolish parents, would borrow $100,000 to obtain a four-year degree at a lackluster school simply because it's "private" and "on the beach" when suitable state colleges and universities are available with little or no borrowing involved.

My wife and I attended private colleges and universities. Most of our children did, too. In hindsight, all were either good or great decisions. But we did not waste time or money.

Arguably the universities charging outrageous tuition for useless degrees and the lenders who enable the students who attend such institutions are the next "sub prime" lender types. Very similar parallels, except for the fact that you can walk away from your mortgage and discharge the debt in bankruptcy.